Author Topic: Fees to sell American Funds to Vanguard?  (Read 891 times)

sw113

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Fees to sell American Funds to Vanguard?
« on: January 03, 2018, 02:53:12 PM »
Howdy,

Newbie mustachian here - more whisker like at this moment.

I've recently transferred all my ROTH American Funds to a Vanguard account.  I'd like to sell the American Funds and buy some low cost Vanguard Admiral shares.  Vanguard shows they will charge $0 for the sale.  But I can't figure out with any certainty what (if any) fee American Funds will charge to sell.  They are class A shares with a front-end load so at this point I'm thinking there wouldn't be a fee to sell. Does anyone know where I can find definitive information?  The fund prospectus states: 

Quote
"Maximum deferred sales charge (load) (as a percentage of the amount redeemed) = 1.00*.
*A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

Indexer

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Re: Fees to sell American Funds to Vanguard?
« Reply #1 on: January 03, 2018, 06:10:29 PM »
You are good.

A shares charge you on the front end.

That deferred sales charge notice is because American Funds waves the front end sales load on 1 million + investments so it turns into a back end sales load if you sell it too quickly.

If you are still worried call Vanguard.

sw113

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Re: Fees to sell American Funds to Vanguard?
« Reply #2 on: January 04, 2018, 07:32:21 AM »
Thanks for the input!
Interestingly, I called Vanguard before I wrote my initial post.  They couldn't confirm what (if any) fees American Funds might charge.